House Committee Approves Iran Divestment
Measure

April 29, 2009 (PLANSPONSOR.com) - The House
Financial Services Committee has approved legislation
enabling state and local governments to divest their public
pension funds from companies with ties to Iran's energy
sector.

H.R. 1327, the Iran Sanctions Enabling Act of 2009,
removes legal barriers to allow mutual fund and corporate
pension fund managers to cut ties with these companies,
according to a press release.

Patterned after legislation enacted last year to
enable divestment from firms investing in certain sectors
in Sudan (see
Bush Signs Sudan Divestment Bill into
Law), the bill specifically provides federal authority
to state and local governments to divest their assets
from, or prohibit investment of their assets in, any
company that:

invests $20 million or more in the energy
sector in Iran;

provides oil or liquefied natural gas tankers
or products used to construct or maintain oil or
natural gas pipelines in Iran;

extends $20 million or more in credit to be
used for investment in the energy sector in
Iran.

The legislation also includes a sunset provision
which would terminate the Act 30 days after the President
determines and certifies to Congress that Iran has ceased
its support for terrorism and is no longer designated by
the U.S. as a state sponsor of terrorism, or has ceased
the pursuit of nuclear, biological and chemical weapons,
the announcement said.